TICKETMASTER: SORDID DETAILS

posted by James Reel

Douglas McLennan has looked into the gaping maw of Ticketmaster and its proposed merger with another company, and reports what he has found here. This is what interests me the most:

TM's fees are exorbitantly high not because it costs so much to process ticket orders, but because the company kicks back money to venues in return for exclusive deals to sell tickets. These payments can run into the hundreds of thousands of dollars, and the company recoups them by charging the consumer higher fees on ticket transactions, claiming the kickbacks as a cost of doing business. The practice effectively cuts out competitors from selling at these venues. The company defends the practice saying it provides added revenue to concert facilities. The practice has ensured that TM maintains its hold on the ticket sale business.